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Gutted Welfare Bill Passes Commons After 49-MP Labour Revolt

The delay of planned PIP eligibility reforms until after an autumn 2026 review has produced a £4.8bn budget shortfall

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Overview

  • The Universal Credit and PIP Bill cleared its second reading by 335 votes to 260, marking a 75-vote majority despite 49 Labour MPs rebelling.
  • Disability minister Stephen Timms announced 90 minutes before the vote that PIP eligibility changes would be postponed pending his autumn 2026 review.
  • Only measures targeting new incapacity benefit claimants and freezing the highest payment rate remain in the bill after successive concessions.
  • Government impact assessments warn more than 150,000 disabled people could be pushed into relative poverty under the scaled-back welfare package.
  • Chancellor Rachel Reeves faces pressure to plug the £4.8bn gap under her fiscal rules, with tax increases in the autumn now under consideration.